Saturday, November 08, 2008

Efficiency Is Still a Sound Investment

So, puttering around the NYTimes this morning, I stumbled upon the Green Inc. blog which is a continuing item in the business section. This article quickly caught my eye.
Does the financial crisis and reduced investment in transformational green technologies put energy efficiency back in vogue?

That is what a new report by McKinsey Global Institute suggests.

In the report, “Fueling Sustainable Development: The Energy Productivity Solution,” to be published Wednesday, the institute says the uncertain economic outlook and the recent period of record-high oil prices could push governments and businesses to invest more in energy productivity.

In the developed world, that could mean more money for energy-saving equipment in manufacturing and energy-saving devices when buildings are remodeled, like improved insulation and lower-energy-consuming lighting.

In the developing world — where energy demand is expected to increase by 65 percent by 2020 — these sorts of investments could be even more important. These countries already account for more than half of global energy demand, and this share is on course to rise to 60 percent over the next decade. China alone is expected to account for 34 percent of the growth in global energy demand over that period.
Interestingly, the article concludes thus - the political and economic challenges facing efficiency investments are at least equal to those confronting transformative technologies like solar and wind power.